Treatment of stale cheque
This query is : Resolved
09 May 2011
The accounting year of the finacial year ends on 31st March, on that date the finacial statement prepared. While checking the bank reconcilation statement we have noticed that some of the cheques issued by the client and remaining outstanding as on 31st March have become stale during April, subsequent to March.
Should we ask the client to reverse the cheques as on 31st March i.e. as on the date of the financial satement.
The client is of the view that the event occurs after the date of the financial statement, these need not be reversed.
Should we ask the client to reverse the cheques as on 31st March i.e. as on the date of the financial satement.
The client is of the view that the event occurs after the date of the financial statement, these need not be reversed.
09 May 2011
It is better to reverse the cheques on 31st March because at the time of audit, the fact is clear that the cheques are stale, so provision of reversal should be made on 31st March only.
09 May 2011
Thanks for the info!
Can you give any reference of the ICAI publication.
Can you give any reference of the ICAI publication.
09 May 2011
There is no specific publication on this. But refer to the Accounting Standard 4 - Contingencies and Events Occurring after the Balance Sheet Date.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- TDS Return Q1 FY 2026-27
- Eway bill generation from place other than registeted
- CREDIT NOTES WITHOUT GST
- DIN reactivation
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Condonation . E-Verification of last year return .
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- GST rate and HSN code for sale of racing horses
- Depreciation of fixed assets- coop housing society in mumbai
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
